Index of Mining Production Down 13.5% Quarter-On-Quarter

The Index of Mining Production stood at 74.4 in the third quarter of 2016 showing a 13.4% year-on-year improvement from 65.6 during the third quarter of 2015, Statistics Botswana has said.

However, the stats agency noted that compared to the second quarter of 2016, the Index of Mining Production shows a decrease of 13.5% from the index of 86.0 during the second quarter of 2016 to 74.4 during the third quarter of the same year.

It added that the quarter-on-quarter changes in the index of mining production reflect fluctuating mining production series, owing to unstable economic environment in the world economy.

Diamond production recovered, registering year-on-year increase of 9.4% when compared to the third quarter of 2015. This follows declines during the previous seven quarters (from last quarter of 2014 until second quarter of 2016).

“However, when looking at the quarter-on-quarter changes, diamonds production decreased by 13.3% during the third quarter of 2016 when compared to production during second quarter of the same year,” Stats Bots said.

“These decreases in production can be indicative of strained trading conditions leading to the need to decrease production due to low demand.”

On the other hand, the Copper-Nickel-Cobalt Matte production increased by more than two fold in the third Quarter of 2016 when compared to production during the third quarter of the previous year. Comparison of production during the third quarter of 2016 and the second quarter of the same year shows a decrease of 26.6%, it said.

On the other hand, gold production decreased by 17.4% in the third Quarter of 2016 as compared to the same quarter of 2015. The decrease was as a result of discovering low quantities of gold from the ore. The negative growth is also recognisable when comparing the current quarter and the previous quarter reflecting a decrease of 20.4%.

Soda Ash production increased by 10.9% in the third quarter of 2016 when compared to production during 2015 third quarter. Production during the third quarter of 2016 gives an increase of 65.9% when compared to production during the second quarter of the same year. This could be attributed to the increased demand for the commodity.

Salt production declined by 18.4% during the third quarter of 2016 when compared to production during the same quarter of 2015. Comparison of production during the third quarter of 2016 and the previous quarter shows an increase of 53.7%. This could be indicative of the increase in demand for the commodity. Coal production decreased by 5.1% in the third quarter of 2016 as compared to the corresponding quarter of 2015. Comparison of the third quarter of 2016 and the second quarter of the same year gives an increase of 56.7%. “The increase was largely attributable to the strong demand for both the domestic and international markets.”

Silver and Copper in Concentrates continued to record zero production during the period under review and for the preceding quarter. “This is as a result of the provisional liquidation of the concerned companies which necessitated halting of production at the respective mines.”

This statistical release presents quarterly Indices of Mining Production (IMP) for the period 2003 to the third quarter of 2016.